Washington State Sales Tax
Beginning July 1, 2020, the Washington State Sales Tax rate in Anacortes is 8.8%. Sales tax charged on retail sales of items sold in or delivered to Anacortes is collected by the vendor and remitted to the Washington State Department of Revenue. Sales tax revenue is distributed by the Department of Revenue as follows:
- State - 6.5%
- County - 0.15%
- City - 0.85%
- Transportation - 0.4%
- Public Safety - 0.3%
- Mental Health - 0.1%
- 911 Communications - 0.1%
- Criminal Justice - 0.1%
- Transportation Benefit District - 0.2%
- Low Income Housing - .1%
City Lodging Tax
The basic lodging tax rate in Washington State is 2%, which is taken as a credit against the 6.5% state sales tax rate; in addition to this the City of Anacortes levies a special 2% lodging tax rate as authorized under RCW 67.28.181, which is applied on top of the regular tax rate, resulting in a total lodging tax rate of 4%. This tax is included in camping fees charged at Washington Park, rentals through online short-term rental companies such as VRBO and Airbnb, and is also collected by all hotels and motels. This revenue is remitted to the Washington State Department of Revenue, returned to the City’s Tourism Fund, and distributed via the Tourism Grant program to promote overnight stays in Anacortes
City Utility Tax
The City Utility Tax rate is 7%. This tax is applied to City water, sewer, and storm drain charges. This revenue is collected by the City of Anacortes and deposited into the City of Anacortes General Fund.
City Solid Waste Utility Tax
The City Solid Waste Utility Tax rate is 12%. This tax is applied to City solid waste and recycling charges. This revenue is collected by the City of Anacortes and deposited into the City of Anacortes General Fund.
Washington State Public Utility Tax on Solid Waste
The Washington State Public Utility Tax on solid waste is 3.6%. This tax is collected by the City of Anacortes but is forwarded entirely to the State of Washington. This is a tax on public service businesses, including businesses that engage in transportation, communications, and the supply of energy, natural gas, and water. The tax is in lieu of the business and occupation (B&O) tax.
Real Estate Excise Tax Rate in Skagit County
The Real Estate Excise Tax rate in Skagit County is 1.78% including 1.28% for the State and .5% for the County. This tax is typically paid by the seller and is collected by Skagit County. The revenue is remitted to the Washington State Department of Revenue. A portion of the tax is returned to the City of Anacortes Growth Management Capital Improvement Fund for use on public facilities.
Business & Occupation Tax
The City of Anacortes does not charge a City Business and Occupation Tax. However, businesses operating in Washington State may be subject to the Washington State Business and Occupation tax.